Visible Gold secures 51% ownership of Sakai property in Québec, balance to follow
TSX-V-listed Visible Gold Mines has entered into an amended agreement with fellow-listed Morocco Strategic Minerals Corporation to acquire the Sakai property in the James Bay Territory of Québec.
The company has concurrently completed the closing of the transaction, acquiring an initial 51% interest in the property, and become its operator.
"The acquisition represents another important step toward Visible Gold's objective of building a leading portfolio of gold exploration assets in Québec. Our strategy is focused on assembling large land positions in proven gold districts where established mining companies are already actively exploring and investing.
"Sakami fits squarely within that strategy, with Fury Gold's deposit immediately to the south and Lux Metals recently announcing the commencement of a drilling programme to the north. With about 250 km² of prospective ground, Sakami provides Visible Gold with a substantial land position in an increasingly active gold exploration area and an asset we believe has the potential to become an important part of this emerging district," says Visible Gold CEO and president Jean-Marc Lacoste.
The transaction structure between the companies was amended to address regulatory requirements for shareholder approval by the vendor, while the overall terms remain unchanged.
Visible Gold will issue four-million common shares to Morocco Strategic Minerals, with one-million shares having been issued already, to become the 51% owner of the project and its operator.
Visible Gold will acquire the remaining 49% interest and issue the balance of shares to Morocco Strategic Minerals by January 31 next year.
Morocco Strategic Minerals will retain a 1% net smelter return royalty on the property, which Visible Gold may repurchase for $1-million.
